DLF - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 3.6

📊 Analysis Summary

DLF shows strong fundamental growth and low debt, but its technical indicators are currently weak, suggesting caution for immediate swing trading. The stock is in a short-term downtrend, with bearish momentum and declining volume. However, its long-term structure remains intact, making it a potential candidate on a reversal signal.

🔍 Technical Indicators

RSI (39.4): Bearish — approaching oversold territory.

MACD (-3.15): Negative — confirms short-term weakness.

Price vs DMA

Current Price (₹800) is below 50 DMA (₹813) but above 200 DMA (₹776) — mixed signals.

Volume: Significantly below average — weak participation.

📈 Fundamental Snapshot

P/E (42.6) vs Industry PE (40.2): Slightly overvalued.

PEG Ratio (1.03): Fair — growth is priced reasonably.

ROE (11.4%) & ROCE (6.51%): ROE is decent, ROCE is weak — capital efficiency could improve.

EPS (₹17.6) vs Price (₹800): Valuation is stretched.

Qtr Profit Growth (+39.4%): Strong — earnings momentum is impressive.

FII Holding ↓, DII Holding ↑: Mixed institutional sentiment.

Debt to Equity (0.10): Very low — strong balance sheet.

Dividend Yield (0.75%): Modest — not a swing factor.

✅ Entry Strategy (If Not Holding)

Wait for RSI to cross 45–50 and MACD to turn positive.

Optimal Entry Price: ₹785–₹795 range, ideally near 200 DMA support.

Confirm with volume recovery and bullish candlestick pattern.

🚪 Exit Strategy (If Already Holding)

Exit near ₹825–₹840, where short-term resistance lies.

If price breaks below ₹775, consider stop-loss at ₹760 to limit downside.

⚖️ Final Verdict

DLF is fundamentally strong but technically weak in the short term. It’s not ideal for immediate swing trading, but could become attractive if momentum reverses. Patience is key — wait for confirmation before entering.

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